Monday, August 23, 2010

TV Ennui: Are Viewers Totally Content, or Just Really Averse to Change?

There's a great collection of stories in today's NY Times, focusing on efforts to change the way we watch TV (online and in our living rooms.) The overall message is that viewers are either pretty happy with the cable/broadcast/satellite programming that finds its way into their living rooms, and that most media companies (except Sony) have pretty much given up trying to produce original shows for the Web. There's also the obligatory piece about 3-D TV.

Sony Pictures Entertainment has continued to pour money into Crackle.com, ordering Web shows that cost up to $1 million each. Why is Sony still betting so big? For one, it thinks it has hung around long enough to learn important lessons about consumer psychology when it comes to the Internet. But Sony also has a potential ace up its sleeve when it comes to funneling Crackle video to TV sets.

Analysts point out that Crackle could become the primary entertainment channel for Sony’s PlayStation Network, a fast-growing video service that pumps games and online content into the living room via PlayStation 3 consoles.

Start-ups and tech giants alike are offering what they say are easy ways to pipe shows and movies to a TV, hoping to win over people who might want a cheaper or more diverse alternative to cable and satellite service.

These companies have a lot of convincing to do. Most people do not have the tech-savviness to tackle the hardware and software setup that these products often require. And the companies are not able to offer access to many shows and channels that are on traditional pay TV, nor bundle services like phone service and Internet access at a discounted rate, as TV service providers do.

If all goes as analysts predict, 3-D TV could account for half of all television sales within five years.

So far, 3-D TV is a sliver of the overall market, accounting for about 2.5 percent of new television sales in the United States in the last quarter, according to a survey by the market researcher iSuppli.

These are confusing times in the living room. The proliferation of Internet video has led to much talk of “cord-cutting” — a term that has come to mean canceling traditional pay TV and replacing it with programming from a grab bag of online sources.

But so far Americans are not doing this in any meaningful numbers. “Nor is there any evidence of it emerging in the near future,” said Bruce Leichtman, the president of Leichtman Research Group, which studies consumer media habits.

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CinemaTech focuses on how new technologies are changing cinema - the way movies get made, discovered, marketed, distributed, shown, and seen. (With occasional forays into other parts of the entertainment economy.) You can also follow CinemaTech on Twitter (@ctechblog).

About Me

For about the last ten years, I've been writing about innovation for publications like the Boston Globe, the New York Times, Wired, Variety, Fast Company, the Hollywood Reporter, Salon.com, BusinessWeek, and Newsweek.
I helped start (and continue to help run) three conferences: Future Forward, the Nantucket Conference on Entrepreneurship & Innovation, and Convergence: The Life Sciences Leaders Forum. I also often speak and moderate at other people's conferences, and serve as a commentator on TV and radio. (Which beats actual work.)
You can reach me by e-mailing kirsner - at- pobox.com. My personal site is www.scottkirsner.com.